According to The Verge and Kotaku reporting, Xbox is undergoing major restructuring under new leadership. Asha Sharma, who took over the Xbox division in February, has announced a broad reset that includes shutting down Compulsion Games, the studio behind the upcoming game South of Midnight. The studio closure signals anticipated layoffs across the division as Sharma consolidates her leadership through aggressive cost-cutting—including recent cuts to Xbox Game Pass pricing. The moves represent a significant shift in strategy for the gaming division.

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